The lab guide has proven to be an extremely accurate and complete instruction. I can guess at what step you are missing but,...
Is the tri-color LED blinking? Is the RED LED lighting up indicating a fault?
Completely disconnect the KDS from the project. Possibly unplug the micro USB connector. and hit Reset.
With the cable plugged back in can the application connect to KMS? If not then Try step 6:
Step 6 (page 181) where you change commTimeOutEnabled to false --is that done.
If after downloading the project via the debugger and KDS, run the project, then pause it. Find out where it is. If it's off in the weeds in the default ISR or a hardfault handler then your code is doing something wrong. This would be standard debugging code practices. put in a breakpoint at the if statement that detects the pushbuttom depression, does it ever get there?
If instead, it is looping through the while 1 loop in main.c then the application may be ok.
The other item it might be something in the motion sequence plan. try using one of the canned examples, ceiling fan is a good one.
Make sure you haven't violated any naming conventions for the variable names. (I think we have found these motion sequence variable names can have no numbers of underscore special characters.
step 11 - where pushing SW3 drives the user.state = USER_RUN_PLAN; to execute. Or before while (1) entry start the plan with this statement.
after that I'm not sure.
There are some great videos for you to watch. Take a look here.
Good Luck,
Philip